Norfolk brewery calls on govt. to let pubs renegotiate annual energy bills
The appeal comes as hospitality venues have seen the average amount they have to pay surge by over 80% over the last year
A Norfolk brewery is calling on the government to allow pubs with annual energy bills to renegotiate their terms, as costs still remain high.
The appeal comes as hospitality venues have seen the average amount they have to pay surge by over 80 per cent over the last year.
Data collected by CGA by NielsenIQ on behalf of the British Institute of Innkeeping, UK-Hospitality, the British Beer and Pub Association and Hospitality Ulster showed that just 29% of hospitality businesses said they feel optimistic about the next 12 months.
Business owners said they are particularly concerned about energy costs, with 86% of firms saying it was a worry.
It comes around a year since energy bills rocketed after the Russian invasion of Ukraine sparked a sharp uptick in gas prices.
Last month, analysis of official Government data by the commercial real estate specialist Altus Group found more than 150 pubs have disappeared for good from English and Welsh communities over the first three months of 2023.
This is a 60% jump on levels from last year.
"Energy costs don't just impact you"
David Holliday is the owner of Moon Gazer Ale near Fakenham, which supplies pubs in North Norfolk:
"So if you imagine this time last year that energy prices were continuing to go up with no end in site, some pubs and breweries locked into one or two year deals. So they are not going to feel the benefit of any energy reductions for two or three years."
"You simply can't just pass on all the costs we've been incurring onto the consumers. It's been very challenging not to do that. Energy costs don't just impact you because your bills go up, all of our supply chain's bills have gone up.
"So it means all of our raw material costs have gone up. Barley went up 35% in January which is pretty much a direct result of the energy increases."
"We are lucky in Norfolk"
"Pub footfall seems to have generally got back to pre-pandemic levels, which is encouraging. We are lucky in Norfolk in that we are in a tourist area, so we might be sheltered from the main impact a bit- as people are still going on holidays."
What has the Government said?
A Government spokeswoman said:
"We acted swiftly to provide businesses, including the hospitality sector, with an unprecedented package of support. As of April, this has saved them ÂŁ6.9 billion on energy costs - amounting to around ÂŁ35 million a day - and enabling some to only pay around half of predicted wholesale energy costs.
"Global energy prices have fallen significantly and are now at their lowest level since before Russia's illegal invasion of Ukraine. The new level of government support reflects this welcome fall in prices, but we will continue to stand by businesses.
"We are also assisting the hospitality sector with support such as freezing of alcohol duty, cutting energy bills, a ÂŁ13.6 billion business rates relief package and a ÂŁ2.4 billion fuel duty cut."